Orange County Legislature Votes to Sell Grand Street Properties for Hotel Project

Real Estate In-Depth | December 7, 2020

The former YMCA building on Grand Street in Newburgh.

GOSHEN—The Orange County Legislature in a unanimous 21-0 vote approved County Executive Steve Neuhaus’ proposal to sell three historically significant properties in Downtown Newburgh to make way for a hotel development.

The three properties on Grand Street will be sold to Sullivan County-based Foster Supply Hospitality for $1.25 million. The proposed project will be developed at the site of a former Masonic lodge, a YMCA and American Legion hall. Foster Supply Hospitality will also invest $20 million of private equity into the project, which will create up to 80 hotel rooms and restore the century-old Masonic Lodge. Part of the development will include opening a 100-seat restaurant and bar on the first floor of the Masonic Lodge.

The plan also includes the development of a rooftop lounge, the restoration of a historic bowling alley in the basement of the lodge, event spaces on the second and third floors, and a cocktail lounge on the fourth floor.

“We are excited to move forward with this project which will help to create significant commercial growth in the City of Newburgh and turn these properties into success stories,” County Executive Neuhaus said on Dec. 4. “The Grand Street properties will provide economic development as well as job opportunities for Orange County residents. I’m pleased that the county will be putting this historic property on the tax rolls and to productive use.”

The project, as proposed by FSH, will fortify SUNY Orange, which is located at that same location. Together, they will form an important conference center opportunity in eastern Orange County, along the Hudson River, county officials stated.

“FSH will be a positive force in the rebirth of these properties and will be a great community partner,” Neuhaus noted. “The City of Newburgh, Orange County, SUNY Orange and the community all participated in the selection of this developer. This significant project will also provide sales and hotel room tax revenue. County Government is committed to helping the City of Newburgh in developing its assets for the benefit of our entire county.”

Orange County received two proposals to acquire multiple county-owned buildings on Grand Street in Newburgh, that were also offered through an RFP issued in June and extended in August.

Somers-based Kearney Realty and Development Group submitted a bid of $250,000 to develop the “Grand Street Revival” that would consist of 60 loft-style apartments, two retail storefronts and one 3,000-square-foot restaurant.

The county acquired the Grand Street Properties in December 2013. The properties include a former YMCA, Masonic Temple and American Legion buildings. The county acquired the Newburgh properties in the hopes of expanding SUNY Orange’s services to those properties.